Since becoming a finance manager for a local car dealership and assisting or helping clients acquire car loans or personal, I have found that many Americans lack a education when it comes to building their credit or managing their money. The main reasons for that is because this subject isn't taught in schools or being taught by their parents. If it were there wouldn't be so many American with little, bad or no credit scores at all. The fact is most Americans don't realize that having a good or great credit scores are very important and having a bad one could follow them 7 years or beyond. Without a good or great credit score some or most will be denied credit on things such as acquiring an auto loan, lease of apartment, eligibility of employment, purchasing a cell phone, personal or home loan and most hotels or car rental companies won't allow a person to rent a room or car without a major credit card. How important is credit? Lets put it this way without credit, in the credit world that person doesn't exist, people with bad or poor credit are treated like second hand citizens and those with good or above credit scores or ratings can almost write their own tickets. People with great credit scores get the best interest rates, can buy whatever they want, get a loan of any type in an instant and move first in line when trying to purchase a car, home or even when applying for employment.
The question is how does one build credit and what are the easy or simple steps to improve ones credit fast? After reading this blog I promise if you use these simple steps you too can start building your credit, while making money at the same time. The first thing a person must know before starting to build their credit is the credit bureau that whatever they do from this moment on will affect their lives forever. If you happen to be reading this I encourage you to take this very serious, because these steps will help you have a great credit score. Step one; get a unsecured credit card, sounds simple but in truth it isn't very easy. Why because most credit card companies won't approve a someone with bad, little or no credit. I know if you are reading this you may ask well if I need one to build credit how do I get one. That part is easy, all one has to do is go online then google credit card for bad or new credit users, after that's done just apply online. When approved then read the fine print , because you will find out that while this company or bank has approved you for the card it doesn't come without strings or a few little fee's attached. What are these strings or fee's, up front charges that the company or bank doesn't want you to pay up front. Sounds confusing? Let me explain if you apply for a Visa or MasterCard and have bad, little or no credit the company or bank will charge you a few just for having the privilege of a credit card. A example of this practice is being approved for $300.00 but once the card being received, the user will only be able to use $150.00 of it. What did the credit company do? Charged the user $150.00 in fee's just to have a credit card. For those who may be alarmed by this, please don't be because there is an easy way around this. Just pay the $150.00 once you receive the card and when used pay the balanced owed before the end of the month. Why you may ask? So that the credit company wont be able to charge you interest. Do this each time you make a purchase with your card and very soon the credit card company will raise your limit in an attempt to get you too make more purchases. Even if they raise your limit to $1000.00 never charge or purchase what you can't afford to pay off. Also by the credit company or bank raising your limit it also raises your credit score, as much as 100 points every 3 months. Which means you could have a credit score as high as 600 or even higher!
Another way to build credit is by taking a small simple interest loan, even if you don't need it. If a loan company or bank wants to loan you some money, borrow it , then put it in the bank and use the money you borrowed to pay the payments. Do this for 8 months straight with payments on time and watch your credit score rise while you make your payments. Also while the money you borrowed is in your bank you will make money on interest for the time it spent sitting in your checking or savings account. You may also take the money you borrowed and invest it in Cd's or in the stock market, but doing so comes with certain risk. Investing in the stock market one could loose or gain money with an up or down turn in the market. Investing in a Cd requires the money invested to be secured for at least 1 or 2 years before an investor could regain the use of it. In life, investing and building ones credit come with risk. But the reward by doing these things for out weigh any risk taken. If a person is truly serious about building their credit quickly with an eye on making money, these are the easy and simple steps to do it. If you have little, none or even bad credit these steps will help you achieve a higher credit score and you will also be Building Your Credit, While Making Money At The Same Time.
W.A.N.
The question is how does one build credit and what are the easy or simple steps to improve ones credit fast? After reading this blog I promise if you use these simple steps you too can start building your credit, while making money at the same time. The first thing a person must know before starting to build their credit is the credit bureau that whatever they do from this moment on will affect their lives forever. If you happen to be reading this I encourage you to take this very serious, because these steps will help you have a great credit score. Step one; get a unsecured credit card, sounds simple but in truth it isn't very easy. Why because most credit card companies won't approve a someone with bad, little or no credit. I know if you are reading this you may ask well if I need one to build credit how do I get one. That part is easy, all one has to do is go online then google credit card for bad or new credit users, after that's done just apply online. When approved then read the fine print , because you will find out that while this company or bank has approved you for the card it doesn't come without strings or a few little fee's attached. What are these strings or fee's, up front charges that the company or bank doesn't want you to pay up front. Sounds confusing? Let me explain if you apply for a Visa or MasterCard and have bad, little or no credit the company or bank will charge you a few just for having the privilege of a credit card. A example of this practice is being approved for $300.00 but once the card being received, the user will only be able to use $150.00 of it. What did the credit company do? Charged the user $150.00 in fee's just to have a credit card. For those who may be alarmed by this, please don't be because there is an easy way around this. Just pay the $150.00 once you receive the card and when used pay the balanced owed before the end of the month. Why you may ask? So that the credit company wont be able to charge you interest. Do this each time you make a purchase with your card and very soon the credit card company will raise your limit in an attempt to get you too make more purchases. Even if they raise your limit to $1000.00 never charge or purchase what you can't afford to pay off. Also by the credit company or bank raising your limit it also raises your credit score, as much as 100 points every 3 months. Which means you could have a credit score as high as 600 or even higher!
Another way to build credit is by taking a small simple interest loan, even if you don't need it. If a loan company or bank wants to loan you some money, borrow it , then put it in the bank and use the money you borrowed to pay the payments. Do this for 8 months straight with payments on time and watch your credit score rise while you make your payments. Also while the money you borrowed is in your bank you will make money on interest for the time it spent sitting in your checking or savings account. You may also take the money you borrowed and invest it in Cd's or in the stock market, but doing so comes with certain risk. Investing in the stock market one could loose or gain money with an up or down turn in the market. Investing in a Cd requires the money invested to be secured for at least 1 or 2 years before an investor could regain the use of it. In life, investing and building ones credit come with risk. But the reward by doing these things for out weigh any risk taken. If a person is truly serious about building their credit quickly with an eye on making money, these are the easy and simple steps to do it. If you have little, none or even bad credit these steps will help you achieve a higher credit score and you will also be Building Your Credit, While Making Money At The Same Time.
W.A.N.
